According to UNCTAD, global FDI flows rose by 11% in 2013 to an estimated USD1.46
trillion, up from a revised USD1.32 trillion in 2012. There has been an increase
in FDI flows in all major economic groupings − developed, developing and transition
economies. FDI projections for 2014 are estimated at USD 1.6 trillion which signifies
a gradual rise as the global economic growth gains momentum, though the risk associated
with uneven levels of growth, fragility and unpredictability in a number of economies
could dampen the FDI recovery.

Preliminary estimates from the Bank of Mauritius suggest that FDI inflows into Mauritius
in 2013 were to the tune of MUR 9.512 billion. FDI is a key driver
of economic development and sustained FDI flows are required to help Mauritius graduate
to a high-income country. In 2013, FDI as a percentage of GDP stood at 2.6%.

As part of Government’s outward investment strategy to further enlarge the
economic space of Mauritian businesses, local investors are on the move to capture
new opportunities to further expand their businesses abroad. In 2013, investment
outflows exceeded the MUR 4-billion mark.

Foreign Direct Investment by sector (%)
Investment in the tertiary sector accounts for nearly 90% of total FDI. Real Estate
activities attracted the major share of investment (MUR 5.9 billion) accounting
for 62% of FDI, with the construction sector and financial services activities each
attracting 8% of total FDI as shown in Figure 1 below.

Figure 1: Share of FDI by sector of activity
Source: Bank of Mauritius

Foreign Direct Investment in agriculture, forestry and fishing has surged to MUR
678 million representing 7% of total FDI with the major share of investment being
in the fishing sector. The manufacturing sector, wholesale and retail trade and
accommodation as well as food services activities captured in total 9% of FDI. The
ICT sector recorded an investment of MUR 60 million (1%).

Foreign Direct Investment sourced by Geographical Region (%)
Europe remains the main source of FDI contributing 51% of total FDI. The significant
increase in FDI influx from Asia (23%) positions this region as the second largest
contributor followed by Africa (22%).

Figure 2: Share of FDI by geographic region
Source: Bank of Mauritius

The combined contribution of North America (2%), Oceania (1%) and Latin America
and the Caribbean (1%) amounts to MUR 401 million.

Foreign Direct Investment by main country of origin (MUR M)
France is the leading investor in Mauritius (21%) followed by China (17%) and South
Africa (16%).

Figure 3: Share of FDI by country of origin
Source: Bank of Mauritius

While in 2012 South Africa topped the league of foreign investors in Mauritius (26%),
it has been surpassed by France and China. It is worth noting the gradual increase
in investment from China over the past two years, from 2% in 2010 to 13% in 2012
and 17% in 2013.

Outward investment in the Financial Services Sector (MUR 535 million) accounts for
13% of total outflows after it peaked at MUR 2.4 billion (43% of total outward direct
investment) in 2012.

Investment in the manufacturing sector has declined (MUR 124 million) while investment
outflows in the wholesale and retail trade have hit a high of MUR 96 million in
2013.

Direct Investment Abroad by Geographical Region (%)
Africa is a continent on the rise, offering myriad opportunities for investment.
The Government is spearheading the Africa Strategy to boost trade and investment
flows and encourage local investors to tap the investment opportunities unfolding
on the continent.

Figure 5: Direct investment abroad by country of origin
Source: Bank of Mauritius

Local investors are showing a keen interest to investing in Africa with investment
outflows accounting for MUR 2,993 million representing 72% of total outflows.

Outbound investment to Europe was to the tune of MUR 730 million (18%), France (MUR
212 million) and Switzerland (MUR 107 million) being the main host countries.

Outward investment to the United States has increased significantly to reach MUR
85 million while the United Arab Emirates has attracted MUR 163 million of investment
from Mauritius, the highest recipient of outward direct investment in the Asia region.

It is worth noting that figures published by the Bank of Mauritius are preliminary
estimates. 2013 data will be revised once the Foreign Assets and Liabilities Survey
2014 (FALS 2014) results are finalized.